Albuquerque, NM, October 23, 2025

A recent audit has uncovered significant mismanagement at First Choice Community Healthcare, accusing former executives of misusing over $2 million in federal funds. The report highlights improper contracts, billing errors, and calls for criminal investigations. County officials have initiated an internal review in response to the allegations, aiming to recover losses and improve financial oversight to protect taxpayer dollars. These findings raise concerns about the integrity of healthcare services in Bernalillo County, particularly for vulnerable populations relying on federal funding for their care.

Albuquerque, NM – Audit Exposes Mismanagement at Former Bernalillo County Healthcare Provider

Albuquerque, NM – A draft audit released today reveals severe mismanagement by former executives at First Choice Community Healthcare, a once key provider for Bernalillo County. The report accuses leaders of misusing over $2 million in federal funds through improper contracts and billing errors, sparking demands for repayment and possible criminal investigations.

The findings center on financial irregularities that compromised patient care and public trust. County officials responded swiftly by initiating an internal review to investigate the claims and prevent future issues. This development has heightened scrutiny on how taxpayer dollars are handled in local healthcare services.

The audit highlights specific instances where federal grants intended for community health programs were diverted. For example, contracts awarded without proper bidding processes allowed personal gains at the expense of essential services. Billing discrepancies also inflated costs, leading to overpayments that drained resources meant for vulnerable populations in Albuquerque and surrounding areas.

Former executives at First Choice Community Healthcare oversaw these operations until the organization ceased being the county’s primary provider. The misuse of funds occurred over several years, affecting programs that supported low-income families, preventive care, and mental health initiatives. The scale of the mismanagement has prompted county leaders to explore legal avenues, including referrals to law enforcement for potential fraud charges.

Impact on Bernalillo County Healthcare

The revelations come at a critical time for Bernalillo County’s healthcare system, which relies heavily on federal funding to serve thousands of residents. First Choice Community Healthcare previously managed clinics across Albuquerque, providing primary care, dental services, and support for uninsured patients. The alleged misuse of over $2 million in federal funds could delay recovery efforts and strain current providers stepping into the gap.

Patients who depended on these services may face disruptions, as the audit questions the integrity of past expenditures. County officials emphasize that the internal review aims to recover losses and strengthen oversight. This includes auditing current contracts and implementing stricter financial controls to safeguard public money.

Local health advocates have welcomed the transparency but stress the need for accountability. The draft report, still under review, details how improper contracts favored certain vendors without competitive bidding, potentially violating federal guidelines. Billing errors, such as duplicate charges and unverified claims, further exacerbated the financial shortfall.

Background on First Choice Community Healthcare

First Choice Community Healthcare operated as Bernalillo County’s main healthcare provider for nearly two decades, focusing on underserved communities in Albuquerque. The organization received substantial federal funding through programs like the Health Resources and Services Administration grants, designed to expand access to affordable care.

However, internal challenges mounted in recent years, leading to leadership changes and the eventual transition away from county contracts. The draft audit, conducted by independent auditors, uncovers a pattern of mismanagement that dates back several years. It accuses former executives of prioritizing personal or improper interests over operational needs, resulting in the misuse of over $2 million in federal funds.

The county’s decision to launch an internal review underscores the seriousness of the allegations. Investigators will examine records, interview former staff, and assess the full extent of the damage. Calls for repayment are mounting, with suggestions that affected funds be redirected to bolster current healthcare initiatives.

Potential criminal probes could involve federal agencies, given the source of the misused money. Bernalillo County residents, many of whom benefited from First Choice’s services, await clarity on how this scandal will affect ongoing care access. Officials assure the public that immediate patient services remain uninterrupted while the review progresses.

The audit’s release highlights broader concerns about financial accountability in public health entities. As Albuquerque continues to grow, ensuring transparent management of federal funds is vital for maintaining trust and delivering effective healthcare. The coming months will reveal more details from the internal review and any subsequent actions against those responsible.

Deeper Dive: News & Info About This Topic

HERE Resources

Author: HERE ALBUQUERQUE